Agenda and minutes

To identify items which have been admitted to the agenda by the Chair for consideration.

(The special circumstances shall be specified in the minutes.)

The following late information was submitted for consideration of the Scrutiny Board:

·  Item 11: Improving Our Procure-to-Pay Process

The information had not been available at the time the agenda was published and despatched. 

To disclose or draw attention to any disclosable pecuniary interests for the purposes of Section 31 of the Localism Act 2011 and paragraphs 13-16 of the Members’ Code of Conduct.

There were no declarations of disclosable pecuniary interests.

To receive any apologies for absence and notification of substitutes.

Apologies for absence were received from Cllr J McKenna and Cllr R Wood. 

Cllr N Buckley was in attendance as a substitute member for Cllr R Wood.

To confirm as a correct record, the minutes of the meetings held on 19 September 2016 and 24 October 2016, respectively. 

RESOLVED – The draft minutes of the meetings held on 19 September 2016 and 24 October 2016 were agreed accurate records.

To receive and consider a report from the Head of Governance Services introducing a suite of Financial Health Monitoring reports, due to be considered by Executive Board on 16 November 2016.

The Scrutiny Board considered a suite of financial health monitoring reports, covering revenue spending, the capital programme and treasury management, considered by the Executive Board at its meeting on 16 November 2016.

The following officers were in attendance for consideration of this item:

·  Doug Meeson – Chief Officer – Financial Services

·  Neil Warren – Head of Corporate Finance – Financial Services

The Chief Officer (Financial Services) gave a summary of the three financial health monitoring reports, which included:

·  Revenue budget – projected overspend of £4M (approx.), a reduction of £1M on the previous report.

·  Capital programme – setting out an increase in the scale of the proposed programme to 2020. 

·  Treasury management  - forecasting an increase in the Council’s external borrowing to £200M (approx.)

The Scrutiny Board discussed a number of areas, including:

·  Levels of staffing / staffing budgets;

·  Risks to the Council associated with Business Rates retention and Business Rate appeals;

·  Business Rate relief for charitable organisations;

·  Developer contributions through Section 278 monies;

·  The level of projected overspend in Children’s Services.

On conclusion of the discussion, the Chair thanked the officers for their attendance and contribution to the discussion. 

RESOLVED –

(a)  That the reports and information presented be noted.

(b)  That the Scrutiny Board continues to maintain an overview of the financial health of the Council throughout the remainder of the year.

(NB Councillor D Cohen joined the meeting at 10:20am during consideration of this item.)

To consider a report from the Head of Governance Services that provides the opportunity to discuss the use of agency staff across the Council. 

The Board received a report from the Head of Governance Services that provided an opportunity to discuss the use of agency staff across the Council.

The following officers were in attendance for the discussion:

·  Alex Watson – Head of Human Resources

·  Ian Williams – Senior Human Resources Business Partner

·  Doug Meeson – Chief Officer – Financial Services

In introducing the item, a number of points were made, including:

·  The overall budget allocation for spending on agency staff was around £5.5M.  This represented around 1% of the overall staffing related budgets.

·  The agency staffing budget was currently overspent, but this was off-set by underspends in other staffing budget areas.

·  Over recent years, significant progress had been made in reducing the Council’s overall spending on agency staff.

·  There was a more rigorous process in place for Human Resources to ‘challenge’ the use of agency staff across the Council, including regular meetings with service managers where agency staff usage was perceived as ‘high’.

·  It was recognised that the use of agency staff did allow a more flexible approach to dealing with known, often seasonal, increased demand in some service areas.

The Board discussed the details presented and highlighted at the meeting.  In recognising the significant improvements and reductions in the overall spending on agency staff, a number of points were raised and discussed, including:

·  The current level of projected overspends on agency staff in the current year.

·  The need for a clearer understanding of the staffing base necessary to deliver services.

·  Ensuring and monitoring the quality of services delivered by agency staff.

·  The need to continue to develop and maintain a skilled workforce, including areas involving specialist skills and knowledge.

·  Other approaches to the use of external employment agencies in helping to deliver aspects of a flexible workforce. 

At the conclusion of the discussion, the Chair thanked the officers for their attendance and contributions to the discussion.

RESOLVED – That the details presented in the report and outlined at the meeting be noted.

To receive a report from the Head of Business Improvement providing an overview of the work being undertaken as part of the wider support services review, to improve how we work and save money.

The Board received a report from the Head of Business Improvement on improving the Council’s procure-to-pay process.

The following officers were in attendance for the discussion:

·  Doug Meeson – Chief Officer – Financial Services

·  Shaun Fogarty – Business Partner Manager – Business Improvement

In introducing the item, a number of points were made, including:

·  Procure-to-pay formed part of the Council’s review of core business processes.

·  A number of short-term and longer-term improvements had been identified.

·  Improvement areas had been priorities and were being addressed accordingly.

·  Part of the work included a review of the Council’s main computer systems, including Financial Management System (FMS).

·  Reviewing the number and location of officers able to procure and pay for goods and services; and considering the extension of ‘purchasing hubs’.

The Board discussed the details presented and highlighted at the meeting.  A number of points were raised and discussed, including:

·  The timescales and resources necessary to complete the identified improvements.

·  The use of an ‘agile development approach’ to help identify and prioritise improvements – including ‘quick wins’.

·  The use of e-billing and e-invoicing, reducing the reliance on paper-based procurement and payment processes.

·  Concern that the Council was significantly ‘behind the curve’ in some aspects of its procurement and payment processes.

·  Issues associated with staff training and the level of investment in ICT.

·  The levels of sagfeguards and controls in the Council’s procurement and payment processes.

·  The need for the Council to be more ‘business minded’ in aspects of its procurement and payment processes.

At the conclusion of the discussion, the Chair stated the business intelligence details presented and discussed were central to the Board’s work in relation to commissioning; the use of waivers; and ‘off contract’ spend.

The Chair thanked the officers for their attendance and contributions to the discussion.

RESOLVED – That the details presented in the report and outlined at the meeting be noted.

(NB Cllr S McKenna left the meeting at 11:15am, during the Board’s consideration of this item.)

To consider the Scrutiny Board’s work schedule for the remainder of the 2016/17 municipal year.

The Principal Scrutiny Adviser presented an outline of the Scrutiny Board’s work schedule for the remainder of the municipal year 2016/17. 

The Board discussed the following main areas for consideration over the course of the municipal year:

·  Commissioning (including use of the Leeds £)

·  ICT

·  Procurement

The Principal Scrutiny Adviser drew the Board’s attention to the review of the Best Council Plan (which formed part of the Council’s Budget and Policy Framework) and the proposed involvement of Scrutiny through a ‘workshop’ meeting, most likely in December 2016.

RESOLVED – That the outline work schedule, including the approach in relation to the review of the Best Council Plan, be agreed, subject to any scheduling decisions necessary by the Chair.

Monday, 19 December 2016 at 10:00am (pre-meeting for all Board Members at 9:30am.)

Monday, 19 December 2016 at 10:00am (pre-meeting for all Board Members at 9:30am).

The meeting closed at 12:05pm.